TMI Blog2013 (9) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... nly fault of the assessee is that the assessee's name did not appear in the record of the broker. For this act, the assessee cannot be held responsible as there is no fault on her part. In the instant case, there is no concealment on the part of the assessee regarding the transactions - If the income as per law is exempted, then the offer of the assessee is meaningless as the law will prevail and will supersede the "offer" made by the assessee. In the instant case, surrender was to buy the peace as the assessee is not an expert in income tax matter. The Department cannot take the advantage of the ignorance of the assessee as per CBDT Circulr No.14(XL-35)/1955 dated 01.04.1955 mentioned in Parekh Brothers Versus Commissioner Of Income-Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed exemption from tax as she had reinvested Rs.20.00 lacs in RBI capital bonds. On scrutiny, the Assessing Officer (AO) found that the transactions are not genuine, so he made the addition. The CIT(A) has confirmed the same, but in second appeal, the Tribunal has deleted the addition. Being aggrieved, the Department has filed the present appeal. With this backdrop, Sri D.D. Chopra, learned counsel for the Department, at the strength of written submission, has justified the order passed by the AO. He submits that the transactions were not recorded by M/s. Goyal Achal Sampati. The assessee herself has surrendered a sum of Rs.20,64,598/- with a condition that no penal proceedings be initiated against her. But, the assessee has filed an app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the light of above facts and constraints of the undersigned, buy peace of mind and to avoid mental agony with an understanding that no penalty whatsoever will be initiated against the undersigned, the undersigned is agreeing to let your honour to treat the said amount of Rs.20,64,598/- as the income from other sources" The AO took undue advantage of the innocence of the assessee. The assessee is not an expert in tax. The letter was conditional, given on the specific undertaking that no penalty whatsoever would be initiated. As in terms of the assessment order dated 18.03.2005, the penalty proceedings under Section 271(1)(c) had been initiated with particular reference to this very receipt, the issue of taxability of the said receipt had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 (Mad); (vii) CIT vs. Shri Ramdas Motor Transport, 238 ITR 177 (AP); (viii) Krishan Lal Shiv Chand Rai vs. CIT, (1973) 88 ITR 293 (P H); and (ix) CIT vs. Dr. N. Thippa Setty, (2010) 322 ITR 525 (Karn). We have heard both the parties at length and gone through the material available on record. From the record, it appears that the assessee had purchased the capital gain bond in NABARD worth Rs.20.00 lacs, the same was duly disclosed in the return. The purchases were made through M/s. Goyal Achal Sampati. When the assessee has shown the investment, then the purchases are genuine and the same cannot be treated as bogus. The amount was reinvested in the RBI capital bond. The AO was having an opportunity to examine both the bonds, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 01.04.1955 mentioned in 150 ITR 105 (Kar). In the instant case, the statement was recorded of the broker, who had confirmed the sale and purchase. No concealment was made by the assessee even then she has made an offer to treat the said income as income from "other sources". The only reason for making the addition is that it was not entered in the register of the company, for which, the assessee is not responsible specially when she has discharged the burden of proof by disclosing all the transactions in the return, as per the ratio laid down by the Punjab Haryana High Court in the case of CIT vs. Sudarshan Gupta, 2008 (10) DRT 134 (P H). Hence, we are of the view that the surrender letter will have to be ignored. Thus, we find no r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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